European Central Bank President Christine Lagarde on Wednesday came out to comment on the impact of the vaccine announcement on the economy and the steps the Central Bank will take.
In the ECB Forum, Lagarde reminded that although the announcement of the vaccine is encouraging, it should be noted that there is a possibility that the pandemic will spread faster. Outbreaks appear to be exacerbated during pregnancy and in patients with defective immune systems.
Pfizer and BioNTech announced on Monday that their Covid-19 vaccine has more than 90% effectiveness in preventing pandemics. This has boosted confidence that the outbreak could be eradicated earlier than expected.
Klaas Knot, who is a member of the ‘Governing Council’, said that the announcement of the vaccine was good news but it would take some time to stimulate the economy.
On the other hand, the European Central Bank forecasts last month on monetary stimulus before the end of the year. The central bank also stressed that there may be a shift in policy policy in December depending on the forthcoming coming out.
At the same time, Lagarde suggested that the central bank would further reduce the cost of borrowing for banks and also make modifications to the Covid-19 related asset purchase program.
